I talked with Jesse Sky (Lead Flashpoints and Operations Designer) about the difficulty of Lost Island and its rewards, and he shared his insight about these questions.
He mentioned that Lost Island is balanced very tightly for a group in Tionese-quality gear, but that because the boss mechanics are heavily execution-based, many players prefer to overgear for it. Small mistakes can easily wipe the group, so bringing Ops level gear is great insurance, even if it isn't required. The loot quality reflects this - players who take the risk of going in with Tionese and Columi gear will be rewarded. Players with Ops level gear are likely there for the Black Hole Commendations right now.
That's not to say that we won't be re-examining gear progression going forward. It just happened that when Lost Island was released (1.2), it made sense to us to offer new players and alternate route to the Rakata chest and Columi main hand while infusing the weekly Flashpoint missions with a bit more challenge for players who had geared past most Flashpoints.
I'm going to have to disagree with you there.
you can claim that it is balanced for tionese but the bottom line is that it is not.
I watched over 30 attempts last night alone, and every group was geared columni or better and all failed.
To be blunt
It's over tuned and not worth the reward.
Now I know i'm about to get hate/l2p flame but I simply don't care.
The bottom line is that the op is right.